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    The Private Creation of Private Trusts

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    Author
    Macey, Jonathan
    
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    URI
    http://hdl.handle.net/20.500.13051/989
    Abstract
    Usually the benefits and burdens of property ownership belong to the same person. In a trust, however, the two are separate. All the benefits belong to one party (the beneficiary) and all the burdens belong to another party (the trustee). Under modern law, three legal entities - a settlor, a beneficiary, and a trustee - are necessary in order to create a trust. To create a trust, the settlor transfers his title in the trust property to the trustee who holds the property for the benefit of the beneficiary. This Article employs an economic perspective to evaluate the creation of private trusts by private individuals.
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